Additional Documentation Rules Applicable to Chapters 3 and 4

In most cases, you must reliably associate the payment with valid documentation to apply reduced withholding and must get the documentation before you make the payment. The documentation is not valid if you know, or

have reason to know, that it is unreliable or incorrect. See Standards of Knowledge for Purposes of Chapter 3 and Standards of Knowledge for Purposes of Chapter 4 , later.

If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later to determine the rate of withholding. For ex- ample, if you do not have documentation or you cannot determine the part of a payment that is allocable to specific documentation, you must use the presumption rules of section 1441.

The specific types of documentation are discussed in this section. However, see Withholding on Specific In- come, later, as well as the instructions to the particular forms. As the withholding agent, you may also want to see the Instructions for the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY .

Sections 1446(a) and (f) withholding. Under section 1446(a), a partnership must withhold tax on its ECTI allocable to its foreign partner(s) or, for a partnership that is a PTP, the PTP or a nominee for a PTP distribution must withhold on the amount of the distribution subject to section 1446(a) withholding made to its foreign partner(s). In most cases, a partnership (or nominee when applicable) determines if a partner is a foreign partner and the partner’s tax classification is based on the withholding certificate provided by the partner. This is the same documentation that is provided for chapter 3 withholding, but may require additional information, as discussed under each of the forms in this section. For information on section 1446(a) withholding, go to Partnership Withholding on ECTI , later.

For information on section 1446(f) withholding, go to Section 1446(f) Withholding, later.

Documentation rule for joint payees. If you make a payment to joint payees (such as holders of a joint account), you need to get documentation from each payee. If you make a payment to joint payees and cannot reliably associate the payment with documentation from all of the payees, you must generally presume the payment is made to an unidentified U.S. person. If the payment is a withholdable payment and any of the payees do not appear, by name or other information in the account file, to be an individual, you must treat the entire amount as a payment made to an undocumented foreign person. However, if one of the joint payees has provided you with a Form W-9, you must treat the payment as made to that payee.

Form W-9. In most cases, you can treat the payee as a U.S. person if the payee gives you a Form W-9. The Form W-9 can be used only by a U.S. person and must contain the payee’s TIN. U.S. persons are not subject to chapter 3 withholding (or withholding under section 1446(a) or (f)), but may be subject to:

• Form 1099 reporting and backup withholding under section 3406,

• Reporting as a U.S. account holder of a participating FFI or registered deemed-compliant FFI, and

14 Publication 515 (2026)

• Classification as a recalcitrant account holder of a participating FFI or registered deemed-compliant FFI for chapter 4 purposes (including chapter 4 withholding) when the FFI is unable to report the information required with respect to the account holder.

Forms W-8. In most cases, a foreign payee of the income should give you a form in the Form W-8 series.

If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8 for chapter 3 or 4 purposes. You can rely on documentary evidence in lieu of a Form W-8 for an amount paid outside the United States with respect to an offshore obligation. Refer to Offshore obligations, later, to determine whether a payment qualifies as such a payment.

Other documentation. Other documentation may be required to claim an exemption from, or a reduced rate of, chapter 3 withholding on pay for personal services. The nonresident alien individual may have to give you a Form W-4 or a Form 8233. These forms are discussed in Pay for Personal Services Performed under Withholding on Spe- cific Income , later.